Iran has halted its most sensitive nuclear activity under a ground-breaking deal with world powers, a confidential U.N. atomic agency report obtained by Reuters showed, paving the way for the easing of some Western sanctions and potentially boosting global oil supply.
The mutual concessions are scheduled to last six months, during which time the parties aim to negotiate a final accord defining the permissible scope of Iran's nuclear activity.
Sanctions have cut Iran's oil exports by more than half over the past 18 months to about 1 million barrels per day (bpd). Tehran has said it will take six months after sanctions are lifted to return to full oil output capacity of 4 million bpd.
(Read more: Oil price caught up in fallout from Iran nuclear deal)
Expectations of more supply from Libya could also keep Brent prices under pressure this week. The Libyan government said it plans to remove protesters who have seized eastern ports used for oil exports within the next few days.
The three ports, which together accounted for 600,000 barrels per day of exports, have been occupied by heavily-armed rebels since the summer.